CMM Working Group
Carbon Market Mechanisms Working Group
What is the CMM Working Group initiative?
A standing forum where carbon-market practitioners and researchers work through the mechanism design questions the market actually faces, publishing discussion papers as the work matures.
Overview
The Carbon Market Mechanisms Working Group (CMM-WG) is chaired by Perspectives Climate Research gGmbH and is supported and coordinated in close collaboration with the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety of Germany (BMUKN). For the last 5+ years the working group has been convening Article 6 negotiators from front-running countries as well as selected experts and practitioners. In Phase I (2019–2022) and Phase II (2022–2024) the mandate of the group was to provide a space to share experiences between stakeholders on the technical side of piloting and rulemaking for market-based cooperation under Article 6 of the Paris Agreement. That included newsletters and discussion papers, virtual sessions on specific technical carbon market topics, events and meetings at the Innovate4Climate (I4C), Regional Climate Weeks, and sessions of the Conference of the Parties (COPs).
Phase III (2025–2027) continues that work on operationalising and implementing Article 6 cooperation. COP29 delivered a breakthrough on the Article 6 rules but putting them into practice still requires discussion, especially as PACM standards, tools and methodologies are evolving. Phase III keeps contributing to building capacity for Article 6 implementation through publication as well as events and fora sharing insights and coordinating efforts. Special emphasis is being put on large-scale activities such as programmes, sectoral and policy approaches. The CMM-WG exists to build a shared understanding of complex technical issues, to give carbon market experts an informal space, and to strengthen the integrity of carbon market instruments.
What this initiative works towards
Contributing to the operationalisation and enhancement of the Paris Agreement Crediting Mechanism
with a special focus on methodological documents for upscaled activities
Elaborating on technical issues in the ongoing Article 6 implementation
including coordinating Article 6 capacity-building efforts as well as spreading of ambitious best practice approaches and concepts in the implementation of Article 6.2 cooperative approaches
Enhancing the alignment of the voluntary carbon market (VCM) with the Paris Agreement
Background and objective
In designing international market-based cooperation as set out in Articles 6.2 and 6.4 of the Paris Agreement, the Parties ought to consider the experience gained to date under the Kyoto Protocol (e.g., under the Clean Development Mechanism), build on successful models and operationalise the new rules in a stringent manner. To this end, the BMUKN supports the CMM-WG, established at the I4C in Singapore in June 2019.
The CMM-WG provides a platform for dialogue, enabling the exchange of experiences and coordination of activities to support the role of programmatic and upscaled activities financed through international market-based cooperation or results-based climate finance. The CMM-WG conducts regular closed-door meetings and workshops attended by technical experts and stakeholders to share experiences, challenges, and success stories of their activities. In addition, background papers on technical aspects of the ongoing operationalisation and implementation of Article 6 are prepared and circulated to consolidate a common understanding.
How it unfolded
- Phase I2019–2022
Established at the I4C in Singapore in June 2019 to foster exchanges of ideas on the piloting and rulemaking of Article 6 cooperation.
- Phase II2022–2024
Continued stakeholder exchange across frontrunners and practitioners to contribute to technical carbon market discussions.
- Phase III2025–2027
Operationalising and implementing Article 6 after COP29, including PACM, with a focus on large-scale programmes, sectoral and policy approaches.
Key publications
- 09/2026 Applying corresponding adjustments: Methods and key implications Discussion paper on how corresponding adjustments are applied under Article 6
- 07/2026 Paris-alignment in carbon crediting: What it means, why it matters and how it can be implemented Discussion paper on Paris alignment in carbon crediting
- 04/2026 Can Insurance Successfully Address Reversal Risk in Carbon Markets? Discussion paper on insurance and reversal risk
- 10/2025 Addressing non-permanence: Key options for carbon credits and their implications for nature-based solutions Discussion paper on non-permanence and nature-based solutions
- 12/2024 Methodological challenges of policy crediting under Article 6 of the Paris Agreement Discussion paper helping stakeholders understand operational challenges of implementing policy crediting approaches
- 10/2024 Key issues regarding Article 6 authorisation Brief paper examining latest developments in negotiations on authorisation-related matters and their impact on accounting, reporting, and review mechanisms
- 08/2023 Interlinkages of registries and implications for functions and structures in the context of Article 6 Discussion paper examining various types of registries within international carbon market infrastructure and the voluntary carbon market
- 12/2022 Progress achieved by the Article 6.4 Supervisory Body on relevant mandates in 2022 Paper elaborating on progress in operationalising Article 6.4 methodology requirements
Supported by
- Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN)
Climate action, in practice